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Budget: pension changes

Trivial commutation of tiddler pensions

As well as personal pensions worth under 16k, you'll now be able to take company pensions worth 2k or less in cash.

http://www.citywire.co.uk/adviser/-/news/pensions/content.aspx?ID=298660

The Chancellor has also eased the IHT rules on ASPs (income drawdown plans for those over 75), which is a welcome move which will hopefully lead eventually to the formal end of compulsory annuities. :)

http://www.citywire.co.uk/adviser/-/news/pensions/content.aspx?ID=298667
Trying to keep it simple...;)

Comments

  • evergreen
    evergreen Posts: 396 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    I have an AVC of about 12000, as well as my civil service pension. Can I have the 12000 as a lump sum or will I have to buy an annuity?
    Would appreciate any advice. Thanks.
  • Andy_L
    Andy_L Posts: 13,160 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Assuming the nominal value of your CS pension is over 4k (taking you over the 16k limit) you will not be able to trivially comute it and will have to purchase an annuity or go down the drawdown route (which may not be possible if it is an AVC linked to the CS scheme)
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